Table of Contents
Company Overview of Tata Motors Ltd
Tata Motors Limited is a worldwide car manufacturer with a broad product lineup that includes cars, SUVs, trucks, buses and military vehicles. The company is divided into segments focusing on automotive operations and other activities.
Within the automotive segment, there are four sub-segments: Tata Commercial Vehicles, Tata Passenger Vehicles, Jaguar Land Rover and Vehicle Financing. The company’s other operations involve IT services, machine tools and factory automation solutions.
Company Overview of Hyundai Motor Co
Hyundai Motor Co., headquartered in Seoul, South Korea, is a global automotive leader renowned for its innovation, quality and cutting-edge technology. Founded in 1967, Hyundai produces a wide range of vehicles, including sedans, SUVs, trucks and electric vehicles (EVs).
Its popular models like the Sonata, Tucson and Ioniq series showcase its commitment to sustainability and customer satisfaction. With a strong global presence, Hyundai operates manufacturing plants and R&D centres worldwide. The company’s focus on autonomous driving, eco-friendly technologies and smart mobility solutions underscores its vision of shaping the future of mobility while maintaining its reputation for reliability and affordability.
The Stock performance of Tata Motors
The table below displays the month-by-month stock performance of Tata Motors Ltd for the past year.
Month | Return (%) |
Jan-2024 | 12.64 |
Feb-2024 | 5.58 |
Mar-2024 | 3.53 |
Apr-2024 | 0.79 |
May-2024 | -9.51 |
Jun-2024 | 2.78 |
Jul-2024 | 16.86 |
Aug-2024 | -4.77 |
Sep-2024 | -11.8 |
Oct-2024 | -14.62 |
Nov-2024 | -7.25 |
Dec-2024 | -5.99 |
The Stock performance of Hyundai Motor
The table below displays the month-by-month stock performance of Hyundai Motor India Ltd for the past year.
Month | Return (%) |
Oct-2024 | -5.76 |
Nov-2024 | 5.02 |
Dec-2024 | -3.67 |
Fundamental Analysis of Tata Motors Ltd
Tata Motors Ltd is a prominent automotive manufacturing company based in India and a part of the Tata Group. Established in 1945, it has grown to become one of the world’s leading vehicle manufacturers, producing a diverse range of products including passenger cars, trucks, buses and electric vehicles. Tata Motors is known for its innovative approach and commitment to sustainability, making significant strides in green technology.
The stock trades at ₹740.15 with a market cap of ₹2,72,458.46 crore and a 0.73% dividend yield. Despite a strong 5-year CAGR of 31.93%, it is 59.29% below its 52-week high, reflecting recent underperformance.
- Close Price ( ₹ ): 740.15
- Market Cap ( Cr ): 272458.46
- Dividend Yield %: 0.73
- Book Value (₹): 93093.93
- 1Y Return %: -7.20
- 6M Return %: -26.14
- 1M Return %: -6.94
- 5Y CAGR %: 31.93
- % Away From 52W High: 59.29
- 5Y Avg Net Profit Margin %: -1.24
Fundamental Analysis of Hyundai Motor Co
Hyundai is a South Korean automotive manufacturer founded in 1967. It has grown to become one of the largest car producers in the world, known for producing a wide range of vehicles, including sedans, SUVs and electric cars. The company is recognized for its commitment to quality, innovation and sustainability, continuously investing in research and development to improve technology and efficiency.
The stock is priced at ₹1,806.10 with a market capitalization of ₹1,46,753.05 crore and an impressive dividend yield of 7.35%. It remains 9.07% below its 52-week high, showing relative stability despite minor recent declines.
- Close Price ( ₹ ): 1806.10
- Market Cap ( Cr ): 146753.05
- Dividend Yield %: 7.35
- Book Value (₹): 10665.66
- 1Y Return %: -0.74
- 6M Return %: -0.74
- 1M Return %: -4.14
- % Away From 52W High: 9.07
Financial Comparison of Tata Motors and Hyundai Motor
The table below shows a financial comparison of Tata Motors Ltd and Hyundai Motor India Ltd.
Stock | TATA MOTORS | HYUNDAI | ||||
Financial type | FY 2023 | FY 2024 | TTM | FY 2023 | FY 2024 | TTM |
Total Revenue (₹ Cr) | 352871.35 | 444589.67 | 446855.20 | 61436.64 | 71302.33 | 72268.43 |
EBITDA (₹ Cr) | 38479.77 | 65211.0 | 67114.13 | 8677.84 | 10605.88 | 10358.84 |
PBIT (₹ Cr) | 13619.41 | 37940.87 | 40534.13 | 6487.97 | 8397.95 | 8219.67 |
PBT (₹ Cr) | 3393.93 | 27955.11 | 31693.22 | 6345.57 | 8239.87 | 8072.59 |
Net Income (₹ Cr) | 2414.29 | 31399.09 | 33341.11 | 4709.25 | 6060.04 | 5967.52 |
EPS (₹) | 7.27 | 94.5 | 100.30 | 5795.71 | 7458.13 | 7344.27 |
DPS (₹) | 2.0 | 6.0 | 6.00 | 5727.0 | 13270.0 | 0.00 |
Payout ratio (%) | 0.28 | 0.06 | 0.06 | 0.99 | 1.78 | 0.00 |
Points to be noted:
- EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization): Measures a company’s profitability before accounting for financial and non-cash expenses.
- PBIT (Profit Before Interest and Tax): Reflects operating profit by excluding interest and taxes from total revenue.
- PBT (Profit Before Tax): Indicates profit after deducting operating costs and interest but before taxes.
- Net Income: Represents the company’s total profit after all expenses, including taxes and interest, are deducted.
- EPS (Earnings Per Share): Shows the portion of a company’s profit allocated to each outstanding share of stock.
- DPS (Dividend Per Share): Reflects the total dividend paid out per share over a specific period.
- Payout Ratio: Measures the proportion of earnings distributed as dividends to shareholders.
Dividend of Tata Motors and Hyundai Motor
The table below shows a dividend paid by Tata Motors Ltd. Hyundai Motor does not distribute dividends to shareholders in India, focusing on global operational strategies instead.
Tata Motors Ltd | |||
Announcement Date | Ex-Dividend Date | Dividend Type | Dividend (Rs) |
10 May, 2024 | 11 June, 2024 | Final | 3 |
11 May, 2024 | 11 June, 2024 | Special | 3 |
12 May, 2023 | 28 July, 2023 | Final | 2 |
30 May 2016 | 18 July, 2016 | Final | 0.2 |
29 May, 2014 | 9 July, 2014 | Final | 2 |
29 May, 2013 | 30 July, 2013 | Final | 2 |
29 May, 2012 | 18 July, 2012 | Final | 4 |
26 May, 2011 | 19 July, 2011 | Final | 20 |
27 May, 2010 | 10 August, 2010 | Final | 15 |
29 May, 2009 | 3 August, 2009 | Final | 6 |
Advantages and Disadvantages of Investing Tata Motors Ltd
Tata Motors Ltd
The primary advantage of Tata Motors Ltd lies in its diverse portfolio of vehicles, including passenger cars, commercial vehicles and electric vehicles, which cater to a wide range of customers and market needs globally.
- Global Presence: Tata Motors, through its acquisition of Jaguar Land Rover and strong domestic operations, has established a significant global footprint, boosting brand visibility and market reach.
- Strong Commercial Vehicle Segment: Dominance in India’s commercial vehicle sector ensures stable revenue streams, supported by infrastructure development and logistics demand.
- Focus on Electric Vehicles: Tata Motors is a leader in India’s EV market, leveraging government incentives and consumer interest in sustainable mobility solutions.
- Innovation and R&D: The company invests heavily in research and development, driving technological advancements in safety, fuel efficiency and alternative energy vehicles.
- Diverse Product Portfolio: Its wide range of products across different price points and segments strengthens its market position, catering to various customer needs from budget-conscious buyers to premium customers.
The main disadvantage of Tata Motors Ltd is its reliance on the cyclical nature of the automotive industry, making the company vulnerable to economic downturns, fluctuating raw material costs and changing consumer preferences in global markets.
- High Debt Levels: Tata Motors carries significant debt, particularly due to Jaguar Land Rover’s operations, which impacts profitability and limits financial flexibility for further expansion.
- Cyclical Demand: Dependence on the automotive industry’s cyclical nature exposes Tata Motors to sharp revenue fluctuations during economic slowdowns and reduced consumer spending.
- Competition in EV Segment: Although leading in India’s EV market, Tata Motors faces intense global competition from established players and new entrants in the electric vehicle space.
- Geopolitical Risks: Global operations, particularly through Jaguar Land Rover, are exposed to geopolitical tensions, regulatory changes and trade barriers, affecting sales and profitability.
- Dependence on Commercial Vehicles: A substantial revenue portion comes from commercial vehicles, making the company vulnerable to changes in infrastructure spending and economic activity.
Advantages and Disadvantages of Investing in Hyundai Motor
Hyundai Motor India Ltd
The primary advantage of Hyundai Motor India Ltd lies in its position as one of India’s leading automobile manufacturers, known for its innovative designs, reliable vehicles and strong presence across multiple market segments.
- Diverse Product Portfolio: Hyundai offers a wide range of vehicles, from compact cars to premium SUVs, catering to various customer preferences and ensuring a strong market presence across segments.
- Advanced Technology: The company integrates cutting-edge technology and features in its vehicles, such as connected car services and safety systems, enhancing customer experience and value.
- Extensive Dealer Network: Hyundai’s robust sales and service network across India ensures accessibility and excellent after-sales support, fostering customer trust and loyalty.
- Focus on Sustainability: Hyundai is committed to eco-friendly initiatives, with investments in electric and hybrid vehicles, contributing to India’s shift toward sustainable mobility.
- Global Expertise: Leveraging its parent company’s global expertise, Hyundai Motor India benefits from advanced R&D, efficient production practices and a reputation for quality, strengthening its competitive edge in the Indian automotive market.
The main disadvantage of Hyundai Motor India Ltd is its reliance on the compact and mid-size car segments, making the company vulnerable to changes in consumer preferences and intensifying competition from domestic and international manufacturers.
- High Competition in Mid-Segment: Hyundai faces stiff competition in the compact and mid-size car markets, where multiple brands offer similar features at competitive prices, impacting its market share.
- Limited EV Portfolio: Although Hyundai has launched EVs in India, its portfolio remains limited compared to competitors, reducing its ability to capture the growing electric vehicle market.
- Dependence on Domestic Market: A significant portion of revenue comes from India, exposing the company to risks from economic slowdowns, regulatory changes and fluctuating consumer demand.
- High Manufacturing Costs: Hyundai’s commitment to quality and advanced technology increases production costs, which can limit pricing flexibility in price-sensitive markets like India.
- Supply Chain Vulnerabilities: Dependence on global supply chains for components makes the company susceptible to disruptions, such as those caused by geopolitical tensions or logistical challenges.
How to Invest in Hyundai Motor and Tata Motors Ltd Stocks?
To invest in Hyundai Motor and Tata Motors Ltd stocks, you must open a Demat and trading account with a trusted broker like Alice Blue, allowing seamless trading and management of your portfolio on stock exchanges.
- Choose a Broker: Select Alice Blue for its competitive brokerage fees, robust trading platform and valuable market insights to make informed decisions while investing in Hyundai Motor and Tata Motors Ltd stocks.
- Open a Demat Account: Link your trading account with a Demat account to securely hold your shares and ensure compliance with regulatory standards for smooth and safe investments.
- Analyze the Stocks: Conduct fundamental and technical analysis of both companies, focusing on market performance, growth potential and financial health to align with your investment strategy.
- Place Your Trades: Use Alice Blue’s user-friendly trading platform to execute buy and sell orders efficiently, keeping an eye on market trends and entry points for optimal returns.
- Monitor Your Portfolio: Regularly review the performance of your investments using Alice Blue’s tools, adjusting your portfolio as needed to meet long-term financial goals and respond to market changes.
Tata Motors vs. Hyundai Motor : Conclusion
Tata Motors excels with its diverse portfolio spanning passenger, commercial and electric vehicles, catering to varied customer needs. Its leadership in India’s EV market and focus on sustainability make it a forward-thinking automotive powerhouse.
Hyundai Motor stands out for its innovative designs, advanced technology and strong presence in the compact and SUV segments. Leveraging global expertise and an extensive network, it remains a trusted choice in the competitive Indian automotive market.
Best Automobile & EV Sector Stocks : Hyundai Motor Vs Tata Motors : FAQ
Tata Motors is an Indian automotive manufacturer and a member of the Tata Group. Established in 1945, it produces a wide range of vehicles, including cars, trucks and buses. The company is renowned for its innovative designs and commitment to sustainability, making it a key player in the global automotive industry.
Hyundai Motor Co is a South Korean automotive manufacturer known for producing a wide range of vehicles, including cars, trucks and SUVs. Established in 1967, the company has become one of the largest automakers globally, focusing on innovation, sustainability and advanced technology in its automotive designs.
Automobile & EV stocks represent companies engaged in manufacturing, selling, or servicing vehicles, including traditional automobiles and electric vehicles (EVs). Key players include legacy automakers transitioning to EVs, pure-play EV manufacturers and related sectors like battery makers, charging infrastructure providers and autonomous vehicle technology firms.
As of December 2024, Natarajan Chandrasekaran serves as the Chairman of Tata Motors Ltd. The company has not appointed a Chief Executive Officer (CEO); instead, it operates under the leadership of an Executive Committee that oversees its operations.
The main competitors for Tata Motors include Mahindra & Mahindra, Maruti Suzuki and Ashok Leyland, especially in the commercial and passenger vehicle segments. Hyundai Motor competes with Maruti Suzuki, Tata Motors and Kia Motors in India’s passenger vehicle market, particularly in compact and SUV categories.
As of December 2024, Hyundai Motor Company has a market capitalization of approximately $34.41 billion USD. In comparison, Tata Motors Ltd’s market cap is around USD 31.85 billion. These figures indicate that Hyundai Motor Company has a slightly higher market valuation than Tata Motors.
Key growth areas for Tata Motors Ltd include its leadership in India’s electric vehicle (EV) segment, expanding its global footprint through Jaguar Land Rover and strengthening its commercial vehicle business. The company also focuses on innovation, sustainability and developing advanced mobility solutions to drive future growth.
Hyundai Motor’s key growth areas include expanding its electric and hydrogen vehicle portfolio, enhancing autonomous and connected car technologies and increasing its presence in emerging markets. The company also focuses on sustainability initiatives and strengthening its position in the premium and SUV segments to drive future growth.
Hyundai Motor generally offers better dividends globally, reflecting its focus on shareholder returns, while Tata Motors does not consistently pay dividends due to its reinvestment priorities and debt management, particularly with its subsidiary Jaguar Land Rover and ongoing expansion in the electric vehicle segment.
For long-term investors, Tata Motors offers strong growth potential due to its leadership in India’s EV market and global expansion through Jaguar Land Rover. Hyundai Motor provides stability with its diverse portfolio, advanced technology and focus on sustainable mobility, appealing to conservative long-term investors.
Tata Motors derives most of its revenue from commercial vehicles, passenger cars and Jaguar Land Rover’s global luxury vehicle sales. Hyundai Motor’s revenue is driven by its passenger vehicle segment, including SUVs, sedans and its growing electric and eco-friendly vehicle portfolio.
Hyundai Motor is more consistently profitable due to its strong global presence, advanced technology and diverse portfolio across passenger and eco-friendly vehicles. Tata Motors, while showing potential in electric vehicles and global markets, faces profitability challenges due to Jaguar Land Rover’s turnaround and high debt levels.
Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.